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Civic technology organisation BudgIT has raised concerns over Nigeria’s 2026 budget, warning that the country’s projected fiscal deficit exceeds the limit permitted under the Fiscal Responsibility Act.
In its report, BudgIT said the approved budget projects revenue of N36.87 trillion against total expenditure of N68.32 trillion, resulting in a financing gap of N31.45 trillion. According to the organisation, the deficit represents 6.41 per cent of Nigeria’s Gross Domestic Product, more than double the three per cent threshold prescribed by law.
The report questioned the credibility of the government’s revenue assumptions, noting that Nigeria has consistently failed to meet annual revenue targets in recent years. It stated that by the middle of 2025, only N10.92 trillion had been generated out of a projected N36.35 trillion, suggesting similar projections for 2026 may prove unrealistic.
BudgIT warned that failure to realise the projected revenue could increase the country’s reliance on borrowing and worsen its debt profile. It also expressed concern over rising poverty, citing official figures showing the number of Nigerians living in poverty rose from 40 million in 2019 to 56 million in 2023.
The organisation further criticised allocations to health and education, describing them as significantly below international benchmarks. While acknowledging improvements in foreign exchange reserves, BudgIT cautioned that the gains were driven largely by short-term capital inflows rather than long-term productive investments needed to sustain economic growth.
